PVC termed future of construction industry

KARACHI: With the growing consumer awareness about the new construction materials and sustainability, the polyvinyl chloride (PVC) downstream market in Pakistan is expected to witness an upward trend in the coming years.

A recent report by Pakistan Credit Rating Agency (PACRA) expects the local construction industry to record a growth of 6 per cent in the current year.

Over the next seven years, the sector is expected to grow by a whopping 92 per cent as Pakistan enters the rehabilitation phase in the aftermath of catastrophic floods and China-Pakistan Economic Corridor (CPEC) related activities revive as well.

As a result, the demand for PVC applications and other construction materials is also likely to gain traction.

Muhammad Idrees, chief commercial officer of Engro Polymer and Chemicals Limited (EPCL) said that the PVC market in Pakistan has undergone a phase of growth and diversification in the last few years.

“To meet the market requirements, we have continued to scale our operations and completed plant expansion to 295,000 tonnes annually. Last year, we contributed $165 million in import substitution through local PVC and VCM production and generated $28 million in foreign exchange through exports,” he added.

Due to Pakistan’s inherent advantages and close proximity to growing regional markets, there is huge export potential for PVC downstream products, which should be capitalised by local manufacturers, he remarked.

“To promote the use of high-quality PVC downstream products, especially in the construction sector of Pakistan, EPCL is undertaking various market development initiatives and has made significant investment with its partners to launch a branded outlet called thinkPVC,” Idrees said.

Elaborating on the concept of thinkPVC outlet, he said that EPCL wants to engage the construction industry and other associated stakeholders to highlight innovative construction materials, with a focus on sustainable materials such as PVC.

Currently, around 55 per cent market share of PVC application in Pakistan is held by pipes and fittings, he said, adding that the goal is to create wider awareness that PVC resin applications include the manufacturing of doors, windows, flooring, roofing, outdoor furniture, vanities, and other products.

Idrees was of the view that with increasing population, there is a dire need to adopt modern and innovative construction materials for sustainable living.

Compared with other materials, PVC is waterproof, termite and damage resistant, fire retardant, and a light-weight material, which offers high durability and requires minimal maintenance.

PVC is more sustainable as it has 50 per cent lower carbon footprint as compared to aluminum, a competing product. It also has a much longer life span and is recyclable. Consumers can save up to 28 per cent in heating and cooling costs when using a double-glazed PVC window, he said.

Idrees believes that the future of PVC downstream market in Pakistan remains promising as climate change tops the government agenda and more sustainable practices will be adopted by the construction industry.

“All the sectors in Pakistan are expected to adopt greener solutions in line with the government policy of preserving natural resources and forests. PVC is a viable alternative to wood products, and we expect to see greater market penetration of PVC downstream products as the construction sector embraces a Go Green approach,” he concluded.